Helium One Global (HE1), the primary helium explorer in Tanzania, is pleased to announce that, following the announcement on 10 June 2024 regarding the launch of a proposed placing and a direct subscription, the Company has raised gross proceeds of £8.0 million at 0.5p.
Comment: If only HE1 was as good as tapping the ground for helium as it is tapping shareholders for cash. It was suggested to me a month ago that HE1’s licenses are due for renewal in September, something many in the market may not be aware of. Therefore, it makes sense that the company raises cash now, just in case of disappointment / delay in that area.
Helix Exploration (HEX), the helium exploration and development company focused on helium deposits within the ‘Montana Helium Fairway’, announced the results of a Scoping Study Economic Analysis conducted by Aeon Petroleum Consultants Corporation. Highlights included: NPV8 of $303.1 million using a helium price of $550/Mcf and grade of 1.50%. Initial CAPEX requirement of only $19.7 million. Net revenue of $605.6 million. HEX said the Ingomar Dome Project demonstrates potentially high returns and low capital requirements. Rapid payback and free cash-flow estimates of over $40 million dollars a year release a range of finance possibilities to provide initial CAPEX requirement.
Comment: The low CAPEX here is certainly a wow, and explains why shares of HEX are already 2.5x since IPO, and of course why the IPO had to be so heavily scaled back. Indeed, it looks as though the shares are only just getting started given today’s news.
Empire Metals (EEE), the AIM-quoted resource exploration and development company, announced its final results for the year ended 31 December 2023. EEE said it is on course to deliver a globally significant titanium project following our initial discovery at Pitfield just 12 months ago. The pace of work witnessed throughout 2023 and into 2024 is a testament to the excitement felt across the technical team and board, who have driven systematic exploration activities and intensive drilling campaigns to ensure its ambitious schedule is maintained.
Comment: Along with Golden Metal (GMET), one can say that EEE has been one of the most successful explorers in the junior mining space. Indeed, the company probably does not need to puff itself up, given the level of discovery already under its belt.
Avacta Group (AVCT), a life sciences company announces the appointment of Peel Hunt LLP as its Nominated Adviser and sole broker with immediate effect.
Comment: With it being alleged that AVCT are already valued as if the company was “over the line”, one hopes that Peel Hunt will be able to defend the 40p a share level.
Novacyt S.A. (NCYT), an international molecular diagnostics company announced that the parties have reached a commercial settlement of all claims and counterclaims in the High Court proceedings previously disclosed by the Company, on terms that the Company pays £5 million to the Department of Health and Social Care. The trial listed to begin this week will therefore not take place. Neither party has made any admission of liability or wrongdoing in respect of the claim or counterclaim or otherwise.
Comment: Given that NCYT has plenty of cash, and presumably the DHSC is chronically skint, one would assume that this is a good outcome for both parties, and that the latest three day rebound in NCYT shares was someone successfully guessing today’s news.
Raspberry Pi announced the successful pricing of its IPO at 280 pence per Ordinary Share. Based on the Offer Price, Raspberry Pi’s market capitalisation will be approximately £541.6 million at the commencement of conditional dealings on the Main Market of the London Stock Exchange. The company said the quality of the interactions during the marketing process has underlined its belief that London has the right calibre and sophistication of investor to support growing, ambitious technology businesses such as Raspberry Pi. The reaction that we have received is a reflection of the world-class team that it has assembled and the strength of the loyal community with whom it has grown.
Comment: The honeymoon phase for a listed company is actually before getting there. It will be interesting to see whether Raspberry Pi is quite so gushing after a few years of trading at a discount to its US peers. We all know what London is really like, and how much better Labour are going to make it?
Golden Metal Resources (GMET), a strategic development and mineral exploration company focused in Nevada, USA, announced an update from the Company’s 100% owned Pilot Mountain and Garfield Projects located within the prolific Walker Lane Mineral Belt in Nevada, USA. GMET said it was advancing project development workstreams at Pilot Mountain with its engaged engineers and permitting specialists; as well as drilling across multiple target areas including Desert Scheelite, which hosts what is believed to be the largest tungsten deposit on US soil.
Comment: Given how sharply shares of GMET are rising with fundraises along the way, it will be interesting to see how much they jump further when the non-dilutive funding / grants come in from the US government.
Author
